TikTok Ban: 8 Things Marketers in a Multicultural America Need to Know

President Trump signed an executive order on Monday to delay enforcing a federal ban on TikTok for 75 days. It is unclear whether such a move will override the ban.  Mid-term a ban or sale, without including the coveted TikTok algorithm, to a new U.S. owner is likely.  8 questions and their answers by brand, media agency and music industry experts, interviewed by Portada.

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(Updated January 21). TikTok ban: Even after the new president, Donald J. Trump, issued an executive order to allow TikTok to continue operating until new owners are found, one thing is very likely: the new owner of the U.S. operation will not have access to TikTok’s highly innovative algorithm, and only buy the U.S.—user base as the Chinese government will not approve a sale that includes TikTok’s coveted algorithm. That is why there is a high probability that regardless of the current legal situation, marketers will have to deal with the fallout of TikTok’s algorithm in the U.S. Here is what experts interviewed by Portada have to say.

1. TikTok ban: How will it impact marketers in a multicultural America?

With more than 170 million users in the U.S., US $ 10.4 billion in advertising revenues in 2024, a 38% increase vs. 2023, and a share of 12% of U.S. social media spend, according to E-Marketer, TikTok is the primary growth story in the social media space. “TikTok is a very effective platform for reaching younger social audiences, and demographically, we know that younger audiences are substantially more multicultural,” Stephen Brooks, a seasoned media executive until recently president of Network Division at GoDigital Media Group, tells Portada. He adds that marketers will have to scramble to find this audience elsewhere in the digital ecosystem if the platform “goes dark” for an extended period due to the ban. According to Pew Research’s November 2024 study on social media, TikTok was the 5th most used social platform for 18-29-year-olds (behind YouTube, Instagram, Facebook, and Snapchat) and the 4th most used for Hispanic audiences of any age (behind YouTube, Facebook and Instagram).
However, Brooks thinks the above data  understates the impact because “TikTok is a better platform than either Facebook or Snapchat for the kind of creator/influencer-driven multicultural content that resonates with younger audiences, probably on par with Instagram.Brooks explains that the platform appeals to younger users in particular because its pro-creator ethos gives it the air of authenticity and positivity, as opposed to much of the social ecosystem, which feels either too toxic or too corporate (or, oddly enough, both).

In November 2024, TikTok was the 5th most used social platform for 18-29 year olds (behind YouTube, Instagram, Facebook and Snapchat) and the 4th most used for Hispanic audiences of any age (behind YouTube, Facebook and Instagram).

For multicultural communities, TikTok has been a tool for finding content that speaks to their unique experiences, whether someone shares a family recipe, showcases local businesses, or celebrates cultural traditions. It’s been an excellent space for discovery and connection in personal and relevant ways, ” says Randy Gudiel, SVP Media Director at Orci. Gudiel asserts that TikTok’s ability to curate experiences better than any other platform makes it very powerful. “It doesn’t just show you what’s popular but what matters to you. For multicultural audiences, that means surfacing content that feels relatable and personal, whether it’s a “No Sabo Kid” joking about growing up navigating two cultures or a small business sharing their hustle story. It’s a platform that celebrates shared experiences while elevating individual voices and resonates across all communities, not just Hispanic ones.”

“TikTok is a better platform than either Facebook or Snapchat for the kind of creator/influencer-driven multicultural content that resonates with younger audiences.”

2. TikTok Ban: Impact on how brands use music

TikTok has revolutionized how music and brands interact and offers various tools to promote music for brands with an “Always On” strategy. The Bytedance-owned social media platform is an excellent space to use Latin Music across brands; in fact, five of the top 10 TikTok songs of last summer were in Spanish.

5 of the top 10 summer TikTok songs were in Spanish.

Leslie Arredondo-Cordero, Founder, LAC Music Services (Former Tik Tok, Paramount)
Leslie Arredondo-Cordero, Founder, LAC Music Services (Former TikTok, Paramount)

“The TikTok ban will heavily impact the music industry,”  Latin music expert Leslie Arredondo-Cordero tells Portada. She notes that the TikTok Commercial Music Library (CML) is an excellent tool for pre-cleared music that can be immediately used without obtaining additional approvals and at no cost.  The CML is a subset of the General Library that offers music for business accounts that can be used in paid ads or “organic” content and is pre-cleared for use on the app for up to 60 seconds. This library stands out among other site tools as it offers a variety of “real” music by independent artists, music in the top music charts, and catalog music, and is a great way to jump on a trend fast. The advantage for brands leveraging music in ad buys is that TikTok and the selected artists are paid via a percentage of the media buy the advertiser pays, sparing the advertiser from dealing with music labels and artists directly. Other platforms do not have comparable music libraries. “Independent music will suffer the most,” says Arredondo-Cordero.
In comparison to TikTok’s Commercial Library, Meta’s library has a different business model. The advertiser needs to buy musical content from the artists/labels directly, and Meta’s library lacks the quality and depth of TikTok’s. Both Meta and YouTube are improving their libraries, with YouTube currently having a higher quality than Meta’s.

Notable Recent Trends on TikTok:

  • Emerging Artists tapping into consumer authenticity
  • Versioned Songs – sped up, slowed down, covers in alternate genres
  • Music Duets & Stitches – calls to action for brands using music is a great way to engage fans and spread the message

3. Will campaigns originally planned for TikTok be as efficient on other platforms?

A media buying executive at a major CPG brand tells Portada that “no, campaigns originally planned for TikTok will not be as effective on other platforms. First of all, the algorithms are not as good, and then the human factor of the level of service given by TikTok vs. Meta or Google is huge. Maybe we could replicate the campaign’s mechanics with Snapchat, but they are sub-scale, especially with older consumers.”

 “Maybe we could replicate the campaign’s mechanics with Snapchat, but they are sub-scale, especially with older consumers.”

Orci’s Gudiel notes that campaigns originally planned for TikTok will “probably not be as efficient.” “TikTok’s ability to blend discovery, community-building, and storytelling is unmatched. You can adapt campaigns for Instagram Reels, YouTube Shorts, or Pinterest, but they don’t have the same organic feel or viral potential.”

Gudiel provides two examples as proof of how TikTok gives businesses a platform to share their stories, connect with audiences, and build authentic community support:

  •  Nico’s Restaurant in Utah. This family-owned Mexican restaurant posted a TikTok video showcasing their fresh tortillas and authentic dishes, which went viral. Customers flooded the restaurant, saving their business and turning it into a local favorite.
  • Lee’s Noodle House is a small Vietnamese restaurant that struggled to stay afloat during the pandemic. A TikTok video showcasing their food and family story gained massive traction, and the community showed up in a big way. The video even caught the attention of local news outlets, creating a ripple effect of support.

“Other platforms can try to replicate this, but they don’t have the same ability to turn a small business into a viral sensation practically overnight, ” says Gudiel. He adds that “the challenge goes beyond losing a social platform—it’s losing a search engine and a powerful commerce tool. TikTok Shop has been a game-changer, especially for small businesses. It’s where discovery meets action, allowing creators and entrepreneurs to connect directly with their audiences.”

4. What are advertisers’ strategies regarding the ban by January 19?

The ban would be even more disruptive if it were to take place later in the year. The first quarter is the slowest in advertising activity. A media buying executive at a major CPG brand tells Portada: “We are keeping the strategies as is for now. We are not live with many campaigns at the moment because we are post-holiday; this is our slowest quarter, so we are waiting to see how things pan out. If TikTok completely disappears, then we would have to replan the campaigns, with the majority of the TikTok spend going to Meta and Google. Still, again, we are not making any changes ahead of the actual changes.”

Gudiel states, “Without TikTok, businesses like Nico’s Restaurant or Lee’s Noodle House lose that direct connection. Larger brands will pivot—they have the resources. However, small businesses and local entrepreneurs will face a much more challenging road. It’s on us as marketers to step up and find new ways to tell their stories and create those connections across other platforms. That might mean doubling on storytelling, investing more in influencers, or finding creative ways to replicate TikTok’s magic.”

 “Larger brands will pivot—they have the resources. But small businesses and local entrepreneurs will face a much tougher road.”

5. Let’s look at costs:  What is the price of influencer and amplification on TikTok versus other platforms?

Influencer marketing campaigns through social media properties have two different components. The cost of the influencer is usually based on follower and engagement metrics and the price the social media platform charges for amplifications, traditionally priced in CPMs (cost per thousand impressions). The CPM rates for campaigns start around US $5-10 dollars per thousand views and can go up to of US $25  for TikTok ad platform packages for auction and reservation ads. Sources tell Portada that the rates on other platforms like YouTube and Instagram are similar. However, at comparable costs, the TikTok influencer and amplification provide more value in terms of engagement. “TikTok is a discovery engagement platform, which makes it authentic; you tend not to have the same level of sharing on IG and TikTok. On IG you see what you follow, on TikTok you are discovering because the algorithms are much more advanced,” says Arredondo-Cordero.

 “At comparable costs, the TikTok influencer and amplification provide more value in terms of engagement.”

6. TikTok ban: Which social platforms have the best chance of substituting TikTok? 

Randy Gudiel, SVP Media Director, Orci

“No single platform can replicate TikTok’s unique combination of discovery, community, and short-form viral content. However, a combination of platforms like Instagram Reels, YouTube Shorts, Pinterest, and emerging players like BeReal could collectively fill the gap. Flip may see this as an opportunity to enhance their social commerce capabilities. Brands must experiment with these alternatives to find what works best for their audience and goals,” says  Orci’s Randy Gudiel.

If TikTok disappears, Gudiel will focus on:

  • Instagram Reels for its strong engagement and shoppable features.
  • YouTube Shorts for storytelling and longer-lasting content.
  • Pinterest and X for trendspotting and niche conversations.

According to Leslie Arredondo-Cordero, music fans will gravitate more to YouTube shorts than to Instagram Reels. “YouTube shorts will gain the most, as their features are more similar to TikTok’s,” she maintains. She adds that Amazon’s Twitch is also well-positioned to gain ground: “I think there will be continued focus on specific activations targeted on platform strengths like lives on Twitch, more high-quality production on IG and perhaps more TikTok like content on Youtube shorts and Snap.  Majors have the funding to execute and amplify the content, but the independent sector must continue being creative.  We will see more experiential activations, mini-docs, and live shops from artists in 2025.  I could even see a mix of various content, such as live experiential selling tickets or merchandise.  If there is a TikTok ban, it will be a huge blow globally to the music industry, but as the saying goes, necessity is the mother of invention, so I am eager to see what new content comes from this latest challenge.”

7. Another wild card: Facebook’s decision to stop fact-checking may substantially increase the cost of social media advertising…

Stephen Brooks

Another development that coincides with the likely TikTok ban and will impact advertiser behavior is Facebook’s decision to no longer feature fact-checking. Keep in mind that X, formerly Twitter, saw a 50% decrease in advertising revenue (according to WARC estimates) after Elon Musk bought the platform and similarly dismantled its content safety protocols. Suppose concerned advertisers pull a similar share of dollars away from Facebook while TikTok remains banned. In that case, we might see the cost of reaching those younger audiences skyrocket as social marketing dollars chase audiences on fewer and fewer viable, nontoxic platforms,” Stephen Brooks asserts.

 “Suppose concerned advertisers pull a similar share of dollars away from Facebook while TikTok remains banned. In that case, we might actually see the cost of reaching those younger audiences skyrocket as social marketing dollars chase audiences on fewer and fewer viable, nontoxic platforms.”

8. …opening opportunities for publishers

Suppose a significant amount of advertising dollars exit Meta and the TikTok ban is enacted. In that case, the cost of viable (non-toxic) social media advertising will substantially increase, making open web publishers a competitive alternative in pricing, scale, and brand safety. This may be an opportunity for diverse audience-targeted publishers as context and content have traditionally been more critical when evaluating media buys. Google- including YouTube – Facebook, Meta  -including IG-  TikTok, and Amazon, have a combined share of approximately 75% of overall U.S. advertising investment. However, Big Tech is a bit less dominant in reaching Hispanic audiences. Ana Crandell, VP of Media Services at Lopez Negrete, told Portada: “Compared to a general market strategy, there is more opportunity for direct publisher incorporation into social and digital recommendations because of the importance of the environment and content. That gives them additional value that is not necessarily true for general market properties.” In this sense,  Crandell notes that she has had to engage with Hispanic consumers way beyond third-party cookies for a long time.”

 

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